Chapter 3: Elasticity 5. Refer to the following table Price of Good E (RM) Quantity demanded of Quantity demanded for Consumer's income Good E good R (RM) 20 2 10 500 18 4 8 450 16 6 6 400 14 8 4 350 a) Calculate the price elasticity of demand for Good E when its price increase from RM4 to RM6. What is the degree of elasticity of demand? (3 points) b) Calculate the cross elasticity of demand for good R when the price of Good E decrease from RM8 to RM6. What is the relationship between Good E and Good R? Give an examples of Good E and Good R. (4 points) c) Calculate the income elasticity of demand for good R when income of consumer increase from Rm350 to RM500. What types of Good is R? (3 points)